TODAY'S NEWS:   I attended a webcast today with Sam Stovall, Chief Equity Strategist for the S & P 500 presiding. The news was not very good for 401K, IRA, and 403B investors. Mr. Stovall sees a modest rally for the S & P 500 in November and December 2011, and a steep decline for the entire year of 2012. Mr. Stovall predicts the S & P 500 to decline at least 18%! How do you feel about at least an 18% decline in your retirement? I am sure not very good.
MORE STORM CLOUDS AHEAD: In the coming weeks American's could face sweeping changes to their retirement plans. The Senate Finance Committee held a webcast a couple of days ago to discuss proposals for strengthening the nation's retirement system as well as the reality that these retirement plans are a target in deficit reduction plans. What does this mean? How about the elimination of the pre-tax deduction for 401K's, IRA's, and 403B's. OK, the possibility of no tax benefit in your 401K coupled with a possible 18% loss in your account does not sound like a sound investment strategy. Not only do we have the possibility of losing the tax incentive, now we will be taxed on a higher gross amount on our paychecks!
PROTECT WHAT YOU NOW HAVE: Today, not tomorrow, not this afternoon, not within the next hour but NOW you must start thinking SAFE and TAX DEFERRED RETIREMENT STRATEGIES. The time for action on your retirement plan is NOW. The ultimate financial vehicle today that offers a SAFE and TAX DEFERRED retirement is an annuity. There are several varieties available. Whichever you choose all the money you invest and continue to invest, compounds year after year without a tax bill from Uncle Sam. Think about it; the ability to keep every dollar invested working for you can be a big advantage over taxable investments.
Give me a call. Let me help you save money and also keep it!